Blog Article On NYSE Program Trading

As the author of the posts in question

http://nakedshorts.typepad.com/nakedshorts/2006/07/if_the_numbers_.html

and

http://nakedshorts.typepad.com/nakedshorts/2006/07/the_nyse_lobs_b.html

the NYSE indictment is on two charges:

1. A reasonably monstrous PR gaffe, and
2. Using a meaningless "headline" number for program trading for the last umpteen years.

They recognized the fundamental flaw in the original "headline" calculation when it went over 90 percent; the problem was instead of acknowledging their long-time stupidity, they tried to slip the change under the radar. Nice try but I got 'em.
 
The old figures always looked high to me, but I assumed they were right.

I doubt if it mattered to anyone, or caused loss.

And I assume the program trading houses knew the figure was bogus.
 
I always thought those numbers were bs. I noticed that H.L. Camp has changed their website to reflect new numbers also. They were always going on about "PT is over 90% of NYSE vol". Gimme a break.
 
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